The role of boutique financial advisors in mergers and acquisitions

Loyeung, A

The role of boutique financial advisors in mergers and acquisitions

Loyeung, A

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Publication Type:: Journal Article
Citation:: Australian Journal of Management, 2019, 44 (2), pp. 212 - 247
Issue Date:: 2019-05-01

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Field	Value	Language
dc.contributor.author	Loyeung, A https://orcid.org/0000-0003-2049-0492	en_US
dc.date.issued	2019-05-01	en_US
dc.identifier.citation	Australian Journal of Management, 2019, 44 (2), pp. 212 - 247	en_US
dc.identifier.issn	0312-8962	en_US
dc.identifier.uri	http://hdl.handle.net/10453/131476
dc.description.abstract	© The Author(s) 2018. This study examines the choice of boutique financial advisors in mergers and acquisitions, and the consequences of this choice on deal outcomes and post-acquisition performance. Boutique advisors often specialize in a particular industry and focus exclusively on providing advice in mergers and acquisitions. The results suggest that boutique financial advisors are preferred when the deal is considered complex and when information asymmetry is high. The study finds that the benefits of hiring a boutique advisor flow to both the acquirers and the target firms. Acquiring firms benefit in terms of improved post-merger performance, while target firms benefit in terms of higher completion of value-enhancing deals and positive cumulative abnormal returns. Overall, these results provide support for the growing popularity of boutique financial advisors in the Australian market. JEL classification: G24, G34.	en_US
dc.relation.ispartof	Australian Journal of Management	en_US
dc.relation.isbasedon	10.1177/0312896218792970	en_US
dc.title	The role of boutique financial advisors in mergers and acquisitions	en_US
dc.type	Journal Article
utslib.citation.volume	2	en_US
utslib.citation.volume	44	en_US
utslib.for	1502 Banking, Finance and Investment	en_US
utslib.for	1503 Business and Management	en_US
utslib.for	15 Commerce, Management, Tourism and Services	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Accounting Discipline
utslib.copyright.status	closed_access
pubs.issue	2	en_US
pubs.publication-status	Published	en_US
pubs.volume	44	en_US

Abstract:

© The Author(s) 2018. This study examines the choice of boutique financial advisors in mergers and acquisitions, and the consequences of this choice on deal outcomes and post-acquisition performance. Boutique advisors often specialize in a particular industry and focus exclusively on providing advice in mergers and acquisitions. The results suggest that boutique financial advisors are preferred when the deal is considered complex and when information asymmetry is high. The study finds that the benefits of hiring a boutique advisor flow to both the acquirers and the target firms. Acquiring firms benefit in terms of improved post-merger performance, while target firms benefit in terms of higher completion of value-enhancing deals and positive cumulative abnormal returns. Overall, these results provide support for the growing popularity of boutique financial advisors in the Australian market. JEL classification: G24, G34.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/131476